Five years ago, John bought the ABC $1,000 9% 15-year bond. The bond could be called four
Fantastic news! We've Found the answer you've been seeking!
Question:
Five years ago, John bought the ABC $1,000 9% 15-year bond. The bond could be called four years from today, at $1090. If the bond is called six years from today, it will be called at $1,080. Currently, the bonds are selling for $1,065.
If John buys the bond today, and the bonds are called 4 years from today, what is John's yield to call?
If the bonds are not called at all, what is the Yield to Maturity?
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Posted Date: